(WASHINGTON) — The nation’s biggest bank has agreed to pay billions to settle claims over mortgage investments.
JPMorgan Chase will pay more than $5 billion to resolve claims from Freddie Mac and Fannie Mae.
Those quasi-government agencies bought loads of investments from JPMorgan that were tied to mortgages. All of those securities tanked when the housing bubble burst, and the Federal Housing Finance Agency says Fannie and Freddie were misled by the bank into thinking the investments were sound when they really were toxic.
The government bailed out Fannie and Freddie, which have since repaid most of the taxpayer money.
Copyright 2013 ABC News Radio
Nate Eaton, EastIdahoNews.com
Lois M. Collins, Deseret News